This study explores how digital transformation influences corporate governance efficiency in Chinese listed firms. Drawing on agency theory and information processing theory, we examine how digital tools enhance board oversight and internal control quality. Using panel data from 1,200 A-share companies between 2018 and 2022, we construct firm-level digital transformation indicators based on annual report disclosures. Fixed-effects regression results show that digital transformation improves governance efficiency by enhancing transparency and information accessibility. Further, we identify moderating effects from executive digital literacy and firm scale. Our findings contribute to the literature by revealing a digital governance mechanism in emerging markets, expanding traditional governance theory into the digital era. The study also offers practical insights for firms and policymakers seeking to strengthen governance through digital strategies.
Xie et al. (Thu,) studied this question.